In my father's living trust he as listed me as person that will receive his home upon his death?

Because you would receive a step-up in basis ( mainly the purchase price of the home plus capital improvements) to your father's date of death value, it is usually better to receive it after he dies. If he gives it to you before death and you sell it, you will be liable for capital gains tax on the entire amount it has appreciated since he acquired it.

For tax purposes: If your father gives you his house now, from a tax standpoint you take his cost basis in the house meaning that if, after receiving the house you sell it, the gain is the difference between what he paid for it (plus improvements) and what it sells for; if you inherit it (take it from his trust when he dies) your basis would be its fair market value on the date of his death (or if you qualify, the value six months after his death). In the long run, it may not make any difference depending on whether or not Section 121 of the Internal Revenue Code is still in effect. This section provides that on the sale of one's principle residence the first $250,000 of gain on the sale is exempt from gross income; this amount is doubled for a married couple to $500,000. So the two things in play: the real estate market and Congress (will it repeal Section 121?)

If the house has increased in value since he bought it, it would be better for you to inherit it. Assets received as an inheritance receive a "step-up" in basis for capital gains purposes when you later sell it. If he paid more for it than it is now worth, then the "step-up" would not be needed.

After he dies. You would get what's called a "stepped-up" basis which you would not get if he gave you his house while he is still alive. A stepped up basis means that you would be considered to have a basis in the house as of the date of his death. If he gave you the house while he was still alive, you would take the property with the basis equal to what your father's basis is. For example, suppose your father bought the house for $100,000. If he gave you the house, your basis would be $100,000. Suppose the value of the house when he dies is $250,000. Your basis would not be $100,000 but $250,000. If the house were not your primary residence, and you sold it for $300,000, you would pay capital gains tax on $200,000 if he gave it to you, but only $50,000 if you got it when he died.

For income tax purposes, it would be much better to receive it after he dies if it is worth more than he paid for it. If it is worth less, it is a little better to receive it before he dies. For estate tax purposes, receiving it before he dies is better if his estate is large enough to be taxable.

No definite answer can be formulated on the information you have conveyed. There are different courses of action, each of which might be preferable depending on the circumstances. You should seek counsel.

After his death. The tax laws provide you with a "stepped up basis" when it is received after death. Your basis will be the fair market value at the time of death. If the home is given to you during his lifetime-such as making you a joint tenant or otherwise, it is a gift and your basis in the property is the basis of your father. Example, your father dies and you receive his home. At his death the fair market value id $100,000.00. You sell the home for $100,000.00 and pay no tax. Suppose he gave it to you in 1980, he lives in it till his death and his basis is $40,000.00. You sell it now for $100,000.00. You have to pay tax on the gain of $60,000.00.